Globally Connected Markets Ignore Fed Rate Hike Talk

The video discusses the influence of foreign banks and private investors on the US treasury market, highlighting the interconnectedness of global markets. It examines how low interest rates in Europe and Japan limit the Fed's ability to tighten monetary policy without causing a spike in the dollar. The role of the FOMC and employment reports in shaping market expectations is explored, with a focus on Stanley Fischer's influence. Finally, the video explains why foreign investors continue to buy US Treasuries despite low yields, driven by a global need for positive returns.

Why are foreign buyers interested in US Treasury yields despite low returns?

What risks do investors face when seeking positive returns in their domestic markets?